Company Number: 13501889

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: HIGH
   Despite some increase in net assets, ISCA CARE LIMITED exhibits significant solvency and liquidity risks, primarily driven by substantial current liabilities exceeding current assets by over £1 million. The persistent negative net current assets over multiple years indicate ongoing cash flow difficulties, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Severe Working Capital Deficit: Net current liabilities of £1,008,453 (2024) and prior years’ deficits suggest chronic liquidity challenges, potentially impacting operational continuity.
• High Current Liabilities: Current liabilities remain significantly large (£1,425,099 in 2024) relative to current assets (£416,646), which may pressure cash flows and creditor relationships.
• Lack of Audited Accounts & Profit and Loss Details: Financial statements are unaudited, and the profit and loss account has not been delivered, limiting transparency on operational performance and profitability trends.

3. Positive Indicators:

• Growth in Net Assets: Net assets improved markedly from £24 in 2023 to £205,625 in 2024, indicating some recovery or capital injection.
• Substantial Fixed Assets Base: Tangible fixed assets valued at approximately £1.29 million provide a strong asset foundation, potentially supporting borrowing or sale if needed.
• No Overdue Filings: Both accounts and confirmation statements are up to date, demonstrating regulatory compliance in filings.

4. Due Diligence Notes:

• Investigate the nature and composition of the large current liabilities, particularly the "Other creditors" category (£1,360,578 in 2024), to assess payment terms, creditor concentration, and risk of default.
• Obtain and review the full profit and loss account and cash flow statements to evaluate operational profitability and cash generation capacity.
• Clarify the company’s strategy or plans to manage liquidity risk, including any financing arrangements or asset disposals.
• Review director and PSC backgrounds for any red flags; current director and PSCs appear stable with no disqualifications reported.
• Confirm whether the fixed assets are encumbered by any debt or liens that may affect their usability as collateral.